The Forum > General Discussion > The green dream becomes a nightmare.
The green dream becomes a nightmare.
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In South Australia wholesale electricity prices in that state reached more than 30 times the prices recorded in the eastern states last week. At one point, the maximum price in the state hit $1400/MWh.
Unsurprisingly, several companies operating in South Australia, including BHP Billiton and beleaguered steelmaker Arrium, warned state Treasurer and Energy Minister Tom Koutsantonis that they might temporarily close their plants because of the high and erratic electricity prices. Electricity contracts for delivery next year and in 2018 are priced at between $90/MWh and $100/MWh in South Australia, compared with between $50/MWh and $63/MWh in Victoria, NSW and Queensland.
Let us not forget that South Australia continues to boast about its status as the wind power capital of the country and having the highest proportion of its electricity generated by renewable sources. Since 2003, the contribution of wind to South Australian electricity generation has grown to more than one-quarter of the total.
The short answer is, contrary to Roy and HG’s famous prognostication that too much is never enough, too much is too much when it comes to intermittent and unreliable renewable energy. South Australia is paying a heavy price for its misguided energy policy, potentially leading to the further deindustrialisation of the state while also reducing its citizens’ living standards. But the real tragedy is that this outcome was entirely foreseeable.
South Australia’s Treasurer and Energy Minister Tom Koutsantonis was last week forced to plead for a temporary power supply from the private owner of a mothballed gas-fired power plant at Port Augusta, after several major companies, including BHP Billiton and Arrium, warned him of possible shutdowns because of high energy prices.
Yet the Labor government still slavishly adheres to its Climate Change strategy that got it into this state.